How to calculate real labor costs

Many remodeling companies that employ in-house labor find a successful team of motivated and engaged craftsmen provides a significant advantage over competitors that work primarily with tradesmen.

But the potential downside is huge. Unless you know how to calculate real labor costs and have exceptional management at every level, field labor can become less productive and more costly.

Schedules are not met, clients are unhappy, and employee turnover eats into profits and deflates morale.

The development of systems to hire, train, manage and reward the best crews is a costly and time-consuming endeavor.

All these costs relate to work done in the field, so they must be included in your estimate.

For details on how to correctly budget for personnel and systems costs in your estimates, click here to read “How to calculate real labor costs” by Remodeling magazine.